The 3 best secured credit cards with no annual fees

Build your credit without worrying about a yearly charge.

Poor credit can be a roadblock to being approved for a card, but you have options to get around it. The first step you can take towards building your credit is applying for a secured credit card.

To use a secured credit card you’ll need to put down an initial security deposit. Once you use the card and begin making timely payments your credit score should slowly tick up — assuming your card reports to the major credit bureaus.

Top secured credit cards with no annual fees

We highly recommend looking into these three secured cards if you don’t want to pay an annual fee: the Discover it Secured Credit Card, the Secured Mastercard from Capital One, and SDFCU Savings Secured Visa.

Card-by-card rundown

We’ve scoured the market looking for the very best secured credit cards that specifically have no annual fees. Among these $0 annual fee cards, we also highlight what factors make these cards attractive.

1. Discover it Secured Credit Card

Our pick for best rewards

The Discover it Secured Credit Card offers something you’ll rarely find in a secured card: cash back. Cash back is a percentage of money refunded on eligible purchases that you can redeem in the form of a bank deposit, statement credit, gift card or charitable donation.

For a secured card, the rewards are stellar. Of course, you may find that your Discover card is accepted at fewer locations than your Visa or Mastercard — but overall, the Discover it card is an excellent pick.

Cash back: Earn 2% cash back at restaurants and gas stations (up to $1,000 each quarter), and 1% on everything else.

First-year sweetener: Discover will match the cash back you earn in your first year.

Intro balance transfer APR: 10.99 for 6 months from date of first transfer.

Minimum deposit: $200

Watch out for:High purchase APR, potentially limited acceptance

2. Secured Mastercard from Capital One

Our pick for lowest deposit

With a secured card, your credit limit will typically equal your security deposit. Not so with the Secured Mastercard from Capital One. Depending on your credit, you may be able to deposit only $49 or $99 and still get a credit line of $200.

Various minimum deposits: Depending on your credit, you’ll make a cash deposit of $49, $99 or $200 to activate your card.

Get an upgrade with timely payments: After you make your first five monthly payments on time, you’ll get a higher credit line.

3. State Department Federal Credit Union (SDFCU) Savings Secured Visa

Our pick for low interest rate

What makes the SDFCU Secured Visa a top contender is its APR of as low as 7.99% or purchases, balance transfers and cash advances. That’s incredibly low not just for secured cards, but credit cards in general.

To get this card, you need to be a member of the State Department Federal Credit Union.

4. Citi Secured Mastercard

A no-frills secured card

The Citi Secured Mastercard is a secured card that gets the job done. It doesn’t offer perks that better cards do, such as rewards, a low APR or the possibility for a low deposit. On the plus side, however, it doesn’t charge an annual fee and it includes Mastercard benefits like travel insurance and purchase protection.

All in all, the Citi Secured Mastercard is outclassed by its flashier competitors. But at the end of the day, it’s a solid card that’ll help you build credit.

Of course, the card’s main strength — the 12.75% variable APR — is eclipsed by the SDFCU Savings Secured Visa’s 7.74% APR. The card also doesn’t have rewards. But it’s still a reliable no-annual-fee choice, as long as you’re willing to join the Digital Federal Credit Union.

Frequently asked questions

Most of the time, your provider won’t pay interest on your security deposit.

Yes. You can use it like any other credit card, as long as you stay within your credit limit.

Many secured-card providers will check your credit. For that reason, you may be declined if your credit score is too low. If you’re declined for a secured card, consider applying with a provider that doesn’t check credit.

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